Three Reasons Advisors Should Care About Water Resources

  • 27.08.2022
  • Wealth Management

For years, you’ve been diligently turning off the faucet each time you brush your teeth. You’ve replaced harsh cleaning chemicals with more natural alternatives and even installed a low-flow showerhead. What more can you do to preserve our planet’s finite supply of water?

Although the aforementioned individual efforts are laudable, household usage accounts for just 11% of global water withdrawals each year. The real culprits, i.e., those that can contribute most to preserving our water resources, are companies. Although there are many reasons that corporations should evaluate their water management practices, we’re focusing here on the financial risks of poor water stewardship. Without further ado, here are three that may well rain on investors’ parades:

1) Reduced or more costly production capabilities and supply chain disruptions

2) Legal action and reputation damage

3) Stranded assets